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No images? Click here  June 10, 2022 #TopStory 🔝 Banks and crypto: caught between users and regulationPanamanian lender Towerbank has begun offering a crypto account that accepts deposits from cryptocurrency exchanges, making it one of the first Latin American banks to offer decentralized financial services. The bank says it introduced its “Crypto-Friendly Account” in response to customer demand. But its launch coincided with political wrangling over cryptocurrency legislation. President Laurentino Cortizo said he will not sign the bill until it meets global compliance standards, leaving the bank’s new product in a legal vacuum: it’s neither prohibited nor regulated. The situation illustrates a dilemma that’s increasingly being faced by banks that want to meet customer demand for crypto accounts while adhering to regulation. The case of Banco Galicia in Argentina is a case in point. It unveiled an account for buying and selling crypto assets and three days later, the Central Bank (BCRA) banned financial institutions from enabling such operations. “There’s a significant risk because the financial regulator can put out a statement that halts the development of your crypto products. Ideally, you would expect a favorable pronouncement from the regulator. So to minimize risk, [institutions] opt for a strategy of simply offering to buy and sell crypto,” Ignacio Carballo, head of crypto and alternative finance at Americas Market Intelligence (AMI), tells iupana. Despite the regulatory difficulties, other Latin American banks are likely adopt Towerbank’s approach, he says. “That’s what the customer wants. Some [countries] may take longer than others, but the financial future lies in the integration of the crypto world.” However, the outlook for Panama’s crypto bill isn’t promising. As it stands now, the crypto law “brings together many issues and they’re all very complex, and in some cases we feel that they’re not addressed with level of detail or depth they deserve,” Amauri Castillo, superintendent of Panama’s Banks, told iupanaPRO. #Strategic moves 📊Mercado Pago tests deliveryMercado Pago is trying out a new service to facilitate food delivery in Argentina so restaurants can arrange dispatches and finalize sales through the wallet. The move brings Mercado Libre into competition with Rappi and PedidosYa. “This is a pilot test of another sales channel for stores,” Mercado Pago told iupana, adding that “restaurants will be responsible for the deliveries Under its proposal, restaurants will benefit by being able to automate the reception and approval of orders. And, in turn, the Argentine payments firm gains presence in stores while adding new services to its multipurpose application Apple launches BNPLThe Big Tech firm has added a buy now pay later (BNPL) service to its portfolio and continues to expand its financial product offering. Apple Pay Later allows U.S. users to split payment for a purchase into four installments over six weeks without any fee. It’s unclear when or if they will offer the functionality in LatAm, where BNPL continues to grow. (Want to know more about BNPL in LatAm? Get up to speed with its growth in Brazil, here). Kavak fires 100 employees in BrazilOnline car seller and financier Kavak has laid off about 150 employees, scaling back operations in São Paulo and Rio de Janeiro less than a year after Ualá: Wilobank acquisition approved in Argentina, education platform launched in MexicoArgentina’s central bank approved Ualá’s acquisition of digital lender Wilobank. The lender’s founder, Eduardo Eurnekián, will receive Ualá Also in Mexico, the Argentine unicorn launched its financial education platform, Aula Ualá (try saying that 10 times!). The virtual classroom makes courses, tutorials, and blogs available to the Mexican public in order to promote financial health. Rappi and Banco Itaú launch credit card in ChileRappi and Itaú have launched RappiCard. The firms are offering a free card product with cashback in a bid to differentiate themselves in the market. In addition, the physical version of the card won’t feature numbers or personal data, after the firms obtained a special license from the Financial Market Commission. Jeeves arrives in BrazilJeeves, a financial company focused on loans to startups and SMEs, began operations in Brazil with the aim of financing companies at a time when access to capital is getting more difficult. #Regulation 📜Panama: Payments project 95% completePanama’s Banking Superintendent, Amauri Castillo, told iupanaPro draft legislation that will give shape to an interoperable payment system between fintechs and banks will be finalized later this year. Brazil: Equity crowdfunding rules relaxedThe Brazilian regulator relaxed the rules for crowdfunding in a move designed to strengthen the financing mechanism. It raised investment limits to R$15 million from R$5 million, effective July 1. In other news:
Love this email? Do your colleagues a favor, and share it with them.#Investments 📈Kushki is Latam’s newest unicornEcuadorian paytech Kushki closed an extension of its Series B for US$100 million, bringing the series total to US$186 million, and raising its valuation to that of a unicorn —something that’s becoming increasingly difficult. Kaszek Ventures, Clocktower Ventures and SoftBank Latin America Fund were among those participating in the investment. The proceeds will be used to fund product development. Klar raises US$90 million, mulls acquisitionsMexican digital bank Klar has raised US$90 million to expand its ecosystem of services that currently includes savings accounts, credit and BNPL. In addition, the fintech said it will explore strategic acquisitions and hire talent. The fundraising round was led by General Atlantic, along with Prosus Ventures, and Quona. Zippi raises US$16 millionBrazil’s Zippi, which specializes in loans to micro business, raised US$16 million in a Series A round led by Tiger Global. The fintech offers firms an advance through Pix to purchase supplies. Turn2C raises US$1.7 millionTurn2C, a Brazilian fintech that uses artificial intelligence to give financial advice, raised US$1.7 million in a seed round led by Honey Island. Its B2B2C business model connects financial institutions such as Itaú Unibanco, Banco do Brasil and Santander with distribution channels and retailers that offer financing to their customers.  VC outlook What’s next for LatAm fintech investment?Top LatAm fintech investors share their outlook on the months ahead – as well as #Alliances 🤝ePayco teams up with PayPalePayco, a fintech payment processor in Colombia, has signed an agreement with PayPal to simplify the process of accessing money from international sales by individuals and corporations. The alliance allows Colombian customers up to three withdrawals per day, regardless of the bank in which the user has its account. Mercado Libre signs up to Mastercard’s crypto risk monitoringMercado Libre and Mastercard have signed an agreement to strengthen the security of crypto e-commerce services in Brazil. MeLi will be able to monitor, identify and assess risks using Mastercard’s CipherTrace technology Did someone send you this email? Get your own copy here#iupanaExclusive 🔥The British neobank Revolut arrives in Brazil with a clear strategy to target users that travel abroad and are eager to invest, says Glauber Mota, its CEO in Brazil.
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